- Retail stock & crypto platform eToro deactivates Terra Luna Classic trading.
- eToro based its decision on the developments in Terra’s bankruptcy case.
- LUNC validators apply pressure on TerraForm’s CEO, demanding answers.
The community behind the Terra Luna Classic (LUNC) blockchain has voiced its disregard for eToro’s action following TerraForm Labs’ bankruptcy procedure. Terra Luna Classic’s parent company, TerraForm Labs, recently issued a timeline for loss claims relevant to the ecosystem’s crisis in May 2022. eToro decided to delist both associated tokens, Terra (LUNA) and LUNC.
Why eToro’s Delisting Move Enraged LUNC Holders
eToro’s move to disable LUNC buying on its platform was not spontaneous. An update on eToro regarding the LUNA tokens warned about the looming close-only status that’s been in effect since July 17, 2024, at 9 AM GMT.
However, the common misconception about this update remains unsettled. The action to remove LUNC and LUNA tokens stems from the high-profile Terra vs. SEC case developments, which settled for $4.5B.
While this has provided a way for LUNA investors to potentially get a reimbursement, it remains unclear how realistic this refund plan is, given that TerraForm Labs’ public wallets contain less than $100 million in disposable digital assets.
However, a major discrepancy exists in eToro’s action to remove LUNC. TerraForm Labs, the chain’s deployer, forked the original product to launch Terra 2.0, which is now known as Terra (LUNA).
Terra Luna Classic Members Call Out Terra CEO
Since mid-2022, LUNC has been powered by a loyal community, which has deemed eToro’s action unfair. As a result, prominent LUNC validators and developers have united to demand answers from Chris Amani, the current TerraForm Labs CEO.
According to people familiar with the matter, TerraForm Labs staff told eToro’s officials that Terra still owns LUNC, so trading on the U.S.-regulated stock and crypto exchange has been discontinued like with LUNA.
Seasoned LUNC validator Vegas Morph has tagged this dispute’s relevant parties, directly approaching Chris Amani: “Can you please tell eToro that you do not own the chain?” The message abruptly spread across Terra Luna Classic’s social media channels as the community demanded both parties’ answers.
Naturally, these developments didn’t bode well for the price of LUNC. The altcoin plunged by 6.2% to trade at $0.00008188 as of press time. Moreover, despite a substantial relief rally last week to tackle the weekly heights of $0.00009299, LUNC failed to restore a $500 million global market cap for the fifth consecutive day.
On the Flipside
- So far, neither eToro’s staff nor TerraForm Labs’ current CEO, Chris Amani, have explained the decision.
- Earlier this year, another American crypto exchange, Crypto.com, warned users about delisting LUNC.
- However, after backlash from LUNC holders, Crypto.com made a U-turn on delisting plans.
Why This Matters
eToro crypto & stock exchange operates in more than 100 countries and has a user base of 35 million. The issue on eToro disables LUNC trading for approximately 78,000 LUNC holders.
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